Where an assessment order is received during the year, the auditor should examine the assessment order and if any interest is determined on the amount of refund, the same should be considered as income. In case where the assessment results in fresh demand, the auditor should consider the need for additional provisioning. Where an assessment order is received during the course of audit, the auditor should examine the same and consider its impact, if any, on the accounts under audit.
It is not prudent to recognise interest on possible refund which is not determined by any order from tax authorities.
Latest posts by Tina Saha (see all)
- Clarifications on the requirement for completion of Advanced ICITSS course and the Advanced IT Test thereunder, with reference to eligibility to appear in CA Final examination, under Final( Old) and Final (New) Syllabus. - January 9, 2018
- Features of Advanced Integrated Course on Information Technology and Soft Skills(Advanced ICITSS)-Advanced IT Test - January 8, 2018
- Exposure Draft of Amendments to Ind AS 20, Accounting for Government Grants and Disclosure of Government Assistance - January 8, 2018